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Digitalbox warns on profit on hit to advertising revenue from algorithm change
StockMarketWire.com
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Digital media business Digitalbox warned on profit an improved monthly performance toward the end of the third quarter was not expected to offset weaker performance earlier in the year as an algorithm change hurt digital advertising.
'Although traffic levels are now increasing month on month, the quarter is not now expected to be sufficiently strong to enable the company to meet current market expectations for revenue and profits,' the company said.
The company did, however, tout a strong second-half performance, with revenue and profit expected to improve, positing the company for a profitable and cash generative year.
Traffic volumes started a recovery in October and November after the impact of a market-wide algorithm change that hurt social media traffic in the lead up to the 2020 US elections. 'With the audience model working well prior to this change, traffic volumes started a recovery in October and November,' it added.
Story provided by StockMarketWire.com
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